eToro continues to diversify with four new cryptoassets

credit: Shutterstock
credit: Shutterstock

Global multi-asset investment platform, eToro has expanded its offering with four new cryptoassets.

Continuing its growth, the firm has added Aave, Compound, Yearn.Finance and Decentraland to its platform, taking the total number of cryptoassets on eToro to 23.

Doron Rosenblum, VP of Business Solutions at eToro, said: “eToro’s plan this year is to expand our range of investments so users have as wide a range of choices as possible available to them and the opportunity to diversify their portfolios across a wide range of use cases. With the addition of these four tokens we are continuing on that journey, and we expect to add more tokens later this year.

“As always, we urge investors to do their research. Just as each stock has a business case, each crypto has a whitepaper that details its use case. Be cautious and remember the basic tenets of investing; diversify and only invest in markets and instruments with which you are familiar.”

Aave (AAVE) coin, the largest of the new additions with a market cap of $5.3bn, supports the Aave protocol which is most famous for ‘flash loans’. These are loans borrowed and repaid in quick succession without the need for collateral.

AAVE, the governance token of the Aave protocol, allows holders to shape the future of the project by making and voting on proposals.

Meanwhile Compound (COMP) is an ‘algorithmic, autonomous interest rate protocol’. COMP, the governance token of Compound, allows holders to propose and vote on upgrades to the protocol. Its market cap is currently $4bn.

The other two additions, Yearn.Finance (YFI) and Decentraland (MANA) have market caps of $2.1bn and $1.3bn respectively.

Yearn is the DeFi world’s decentralised robo-adviser, allowing users to automatically allocate funds to the most lucrative yield-earning opportunities in the booming DeFi market, including lending aggregation, yield generation, and insurance. YFI is the governance token of Yearn.Finance, and is used to vote on proposals and receive cash flow from fees earned by the protocol.

Finally, Decentraland is the ethereum-powered protocol that melds virtual reality with blockchain to create a Minecraft-inspired 3D world. In this blockchain-based virtual reality, players can explore as they do in popular video games, socialise with friends, visit virtual casinos, and trade collectible items in the form of non-fungible tokens (NFTs). MANA is the money of Decentraland, used to buy digital real estate and other virtual items, along with granting holders the ability to vote on governance proposals.